ASEAN Becomes China'S Fastest Growing Export Market

What is worth our attention is that while the overall export is growing rapidly, China's absolute and relative values of ASEAN's yarn exports have all declined.

Exports increased by 112% during that month.

and

Increased by 96.3% and 140.8% respectively.

In 1-2 months, ASEAN's total exports amounted to US $5 billion 940 million, an increase of 35.6%, of which 29.7% of textiles and 45% of clothing.

In February, it exported only 39 thousand tons, a decrease of 14.7%, and the total export volume in the first two months dropped by 4.8%.

The total volume of needles and woven garments increased by 30.2%.

Unit price increased by 8.9%.

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According to incomplete statistics, by the end of 2014, enterprises had set up more than 2600 enterprises in textile and clothing production, trade and product design overseas, with a large number, which were mainly distributed in over 100 countries and regions, covering a number of key regions such as Southeast Asia, North America, Europe, Australia and Africa, and the main investment enterprises came from coastal provinces such as Zhejiang, Jiangsu and Shandong.

The "Pakistan Investment Forum" held by ICBC and Pakistan Habib bank was held in Suzhou. The conference attracted participants from more than 40 enterprises and relevant departments of China and Pakistan to participate in the joint venture to explore opportunities for investment development between China and Pakistan.

Assistant to the president of China Textile Industry Federation, Xu Yingxin, executive vice president of the textile industry branch of China Council for the promotion of international trade, Zhu Bei Na, China's Cotton Textile Industry Association, vice president of textile industry branch of China Council for the promotion of international trade Lin Yunfeng, vice president of China Knitting Industry Association Zhao Hong attended the meeting.

Xu Yingxin said at the "Pakistan Investment Forum" textile sub forum that at present, China's textile industry has entered a new stage of pnational layout, and overseas investment is accelerating in many regions, industries and forms.

At the same time, the strategic goal of the pnational resources allocation of textile industry is to achieve the global integration of the industrial chain and the global breakthrough of the value chain through "going out".

Xu Yingxin said that according to the mastery of the textile industry's "going out" situation, there are two main lines, three characteristics and two key concerns in the overseas investment of textile industry at present.

One of the two main lines is to take the industrial capital of China as the leading factor, and to carry out the pnational layout of productive forces through greenbelt investment and cooperation, so as to create a layout mode of manufacturing bases for "China + surrounding countries" (especially in Southeast Asia and South Asia), and to maintain and enhance the international leading edge of China's textile industry in the global supply chain.

Another main line is the vertical extension and control of China's textile industry capital through active overseas direct investment and mergers and acquisitions to raw material resources, R & D resources, brand resources and market channel resources at the two ends of the industrial chain, so that our industry can penetrate into the high value-added field of the world textile industry value as a whole.

The three characteristic is cotton spinning and knitting industry becoming the focus of overseas greenbelt investment.

Over the past few years, the cotton purchase and storage policy has resulted in an average cotton price of 30% higher than the international cotton price, which has seriously weakened the international competitiveness of China's cotton textile industry. In 2012 and 2013, China imported 1 million 530 thousand tons and 2 million 100 thousand tons of cotton yarn respectively, up 69% and 37% respectively over the same period last year.

In this case, the domestic cotton textile enterprises began to invest overseas in a large scale. The total investment of cotton spinning in Vietnam by more than 1 million spindles has been more than, such as Tianhong, Bailong, Huafu, new Dadong and Yulun.

At the same time, due to the labor-intensive characteristics of sewing links, knitted apparel processing is also a hot industry for foreign investment of our textile industry.

Shenzhou International, the AB group, the East Group and the group of AB have invested in Greenbelt in countries with lower labor costs, such as Kampuchea and Vietnam. For example, the order of Dong Du group has been covered by manufacturing base in Southeast Asia, and the number of local workers has exceeded 20 thousand.

Two, cross-border mergers and acquisitions of upstream raw materials and brand technology are increasing.

In terms of upstream raw material resources control, the acquisition of Australia's Kapp cotton field, the acquisition of Canada's New Zealand's dissolving pulp company is a typical success story.

In terms of brand and technology acquisition, YOUNGOR (600177, stock bar) acquired SMART and XINMA shares, and the Bank of China (000982, stock bar) purchased the Duncan cotton mill in the United Kingdom, Ruyi bought the Japanese Listed Company Renna Co., Ltd., acquired the French silk enterprise MARCROZIER, the acquisition of the Krizia brand in Italy, the acquisition of Swiss Ou Ruikang natural textile machinery and textile machinery specialized assets and equity and other cases are all efforts to acquire brand and technology quality resources through mergers and acquisitions in the world according to their own needs.

The three is to "go out" and integrate closely with the Chinese market.

The "going out" of China's textile industry is based on the healthy development of domestic business.

Many overseas investment businesses are selling in the rapidly developing Chinese market.

Most of the cotton yarn produced by Tianhong, Dai Yin and Cole group is sold back to China.

Many overseas brands and technology investment mergers and acquisitions also uphold the strategic concept of "China's market power to grafted global resources".

The two point is that global trade policy reform is profoundly affecting the reshaping of the global textile supply chain. TPP and other regional trade agreements will pose great challenges to the development of our industry.

Since the Doha round came to an impasse, regional free trade agreements have had a huge impact on the global trade in goods.

For example, since most of the products are two-way zero tariffs, the China ASEAN Free Trade Area has accelerated the outward movement of some of our cotton textile and clothing to Vietnam and other countries. On the other hand, it has also promoted the export growth of domestic accessories to ASEAN countries. ASEAN has rapidly surpassed Japan to become the third largest export market of China, and China and ASEAN's textile and apparel industry chain are undergoing deep integration.

In the next few years, due to the huge market capacity of the United States and Japan and the origin rules of "yarn recognition" and "cotton recognition", the signing of TPP may further accelerate the massive investment in cotton spinning, fabric and garment industry in Vietnam and Malaysia.

In addition, Japan and the EU use preferential country tariff policy to give Kampuchea, Burma, Vietnam and other countries zero tariff or low tariff, up to 6-10 percentage points of tariff preferences, and induce buyers to pfer orders to these countries on the premise of satisfying quality, and then accelerate the pace of overseas investment of our enterprises.

The two is that the enterprise's foreign investment is increasingly rational and prudent, and attaches great importance to foreign financing, comprehensive cost, investment safety and whole risk management.

In the special investigation of China textile industry's overseas investment, the financing cost of overseas investment has always been a hot issue. Enterprises' overseas investments and mergers and acquisitions are making full use of the time window of the current US dollar financing cost.

For example, the comprehensive interest cost of Dai Yin's loan in Malaysia cotton textile project is significantly lower than domestic financing cost.

At the same time, enterprises also attach great importance to the due diligence and feasibility analysis of investment, and consider the factors such as labor sufficiency and cost, labor productivity, raw material supply, industrial chain matching, sales market, management personnel and so on, and calculate the comprehensive cost, and give full play to the real advantages of investment destination.

In addition, investment safety and risk prevention and control are the most concerned factors for enterprises. It is very important to have a comprehensive understanding of the legal system, political environment and cultural customs of the investment place.

Speaking of cooperation with the textile industry in Pakistan, Xu Yingxin said Pakistan is an important member of the world textile industry, and the textile industry is also the most important pillar industry in Pakistan.

Meanwhile, building and promoting greater progress in the economic corridor between China and Pakistan is a major task of the national strategy of "one belt and one road".

China's textile industry will do its best to support the upgraded version of the China Pakistan free trade area to achieve a high level of two-way free trade in the field of textiles and clothing, which is also conducive to improving the enthusiasm of Chinese textile enterprises to cooperate with Pakistan in terms of production capacity.

At the same time, we also fully support the further development of the "China Pakistan Industrial Park" project jointly built by ICBC and Pakistani partners and the further development of the project of "Pakistan ICBC Ruyi textile and Garment Industrial Park", and do some solid work in such aspects as park promotion, information interaction, financial support and risk control plan recommendation.

Qiu Yafu, chairman of Shandong Ruyi technology group, also said at the meeting that Shandong Ruyi Technology Group invested and built factories in Pakistan is the best choice for enterprises at present. Not only Pakistan has abundant labor and energy resources, but also the workers have a very active enthusiasm for their work attitude. At the same time, China and Pakistan have stable relations and deep friendship.

It is understood that Shandong Ruyi Technology Group plans to invest 2 billion US dollars in Pakistan. At present, it has invested in the construction of Pakistan Industrial Bank Ruyi textile and garment industrial park in Pakistan. The project is now in normal operation.

The external investment of textile industry covers almost the entire textile and garment industry chain, from upstream cotton, pulp, hemp and other raw materials to cotton spinning, wool spinning, chemical fiber and other intermediate products manufacturing, and then to the terminal clothing, home textiles and textile machinery and so on.

The form of foreign investment in textile industry includes typical forms of FDI, such as greenbelt investment, equity merger and acquisition, asset acquisition and joint venture.

Although the cumulative amount of foreign investment is only a few billion dollars, according to the past three years of China Textile Industry Federation's special visit research, China's textile industry's overseas investment has accelerated growth trend.